GKP 04/07/13 - RSI breakouts
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There's been a triple whammy of RSI breakouts today which is a very bullish signal and price usually follows. Here we see the weekly chart but this, of course, could yet reverse and close inside as there's still Friday to come. I think it's unlike to do that for the following reasons....
The daily chart on the left shows a clear RSI breakout with price yet to reach its equivalent downtrend. In my experience this is usually an early signal that prices will follow.
In addition, the inside bar mentioned in the previous blog entry has now broken and closed to the upside which is an added bullish signal. As we can see, the downtrend lies at 154p so that's the number to keep our eyes on tomorrow.
In addition, the inside bar mentioned in the previous blog entry has now broken and closed to the upside which is an added bullish signal. As we can see, the downtrend lies at 154p so that's the number to keep our eyes on tomorrow.
Finally, here's the 4H chart which has been usually helpful recently in terms of RSI supports and resistance. Again, we have the RSI breakout prior to price so if the weekly maintains it's position we'll have a hat-trick of RSI breakouts which should result in a good week next week.
Technically, of course, price hasn't broken out and the downtrend is still technically in play but I've seen this type of action many times before and there's a high probability of an upward move from here in my experience.
Let's see what happens tomorrow. The general markets are also very bullish and likely to be so tomorrow
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